The Accelerating Pace Of Change
The UK’s proposals for change in welfare reforms and the Armed Forces is underway but business change hasn’t been too noticeable for many. However that is about to change. Large companies have begun to implement significant structural change and much more is on the way, starting with HSBC on 11th May.
HSBC to reduce size of branch network
HSBC is announcing changes to its retail operations in the UK in order to lower their cost to income ratio. According to reports the options being considered include:
- Sale of a significant number of branches.
- Relocation of the UK retail Head Office from Canary Wharf to a less expensive location in London
- Removal of layers of middle management
- The creation of a new ethos where all sections of the bank must contribute profits or be restructured or sold
It’s likely that the changes will follow a similar pattern adopted by other banks and particularly by Bob Diamond at Barclays Bank where each individual business must contribute to profitability or risk being shut down.
Research determined strategy
A great deal of research has been undertaken by banks to determine the strategy that will be most beneficial. Interestingly TSB telephoned me last week to survey my attitude to service levels within my local bank in St Albans.
Too much change can be destructive
It would seem that wholesale change is likely to be implemented by Stuart Gulliver at HSBC. However, in my experience, too much change all at once can cause unforeseen problems. These include:
- Change instability. Where one part of the organisation is unable to perform properly because of the change happening further upstream or downstream of the product flow.
- Change fatigue. where individual teams suffer so much change that it stalls whilst they take a breather to collect their shared breath.
- Time differences. This is where the people that have designed the change are impatient to implement the change and therefore find themselves in a future time frame where they have a vision of the desired results whilst those affected by the change are still firmly set in the past and will cling onto what they know best. To overcome this time difference there needs time for teams to express concerns without being considered disruptive or anti-sponsors of the change strategy.
Complex and all embracing change warrents Directors and managers to be meeting with teams, regularly and consistently with a similar message and reassurance, even when bad news is being delivered.
